Business licensing in Prague
These information pages can help you get started in learning about some of the laws and registration requirements that may apply to your experiences on Airbnb. These pages include summaries of some of the rules that may apply to different sorts of activities, and contain links to government resources that you may find helpful.
Please understand that these information pages are not comprehensive, and are not legal advice. If you are unsure about how local laws or this information may apply to you or your Experience, we encourage you to check with official sources or seek legal advice.
Please note that we don’t update this information in real time, so you should confirm that the laws or procedures have not changed recently.*
Am I a business? Do I need a license? Where can I get a license?
It depends on the nature of your activity whether you are running a business.
In the Czech Republic, any person who engages in a continuous activity (i.e., an activity that is not conducted on a one-off basis, but on a more continuous and regular basis), which is carried out independently, in his/her own name and his/her own responsibility for profit (in terms of the Czech Trade Act) will likely need a business license from the trade office (živnostenský úřad). In some cases, it may be difficult to determine whether you need a business license (for example, in case you provide Experiences on an occasional basis). If you have questions, we encourage you to check the webpage of the Prague District 1 summary on what is deemed to be and what is not deemed to be a business in the meaning of the Trade Act.
Here are some examples where a business license may not be needed:
- I am a host who will be providing a one-off sightseeing tour, or maybe only a handful of times a year, of historical gardens and parks with stops at my favorite cafes and breweries and I do not intend to make a profit. This is a hobby of mine, my day job is web design.
- I am a professional ballet dancer and I make my living by performing and teaching classes. In my spare time I have a passion for sharing the art of my city. I would like to provide maybe one or two Experiences in my off-season centering on group painting activities of classic Prague cityscapes.
But if you would like to provide Experiences on a regular and for-profit basis, a business license is necessary.
Here is an example where a business license will be needed:
- I am an office manager who owns two horses stabled near Prague and I will be providing horseback riding tours during the weekends and I intend to make a profit.
If you are not sure whether you need a business license or you have questions you should check your position with the City of Prague or your legal or tax advisor.
The general business license (živnostenské oprávnění) can be obtained either in-person from the trade office or online, through the Information System of the Trade Register. For the City of Prague, you can find information regarding their trade office here. If you are interested in reading more about getting trade licenses you can find out general information from the Ministry of Industry and Trade and here.
In some cases, additional special business licenses may be necessary where there is a special activity involved. Instructions on the application forms, fees, and documentation needed can be obtained at your local authority - in the case of Prague the office information can be found here.
Check with your local council to be sure your entrepreneurial activities are authorized. You should be aware that according to the Czech Trade Act there may be civil fines enforced of up to CZK 500,000 (EUR 18,500) for operating a business without a general business license, and up to CZK 1,000,000 (EUR 37,000) for failing to have a special business license in the cases where such a license is required.
Is there anything else I should think of?
If you are conducting a business you need to be aware of your tax obligations and you should also check whether you are a business who needs to comply with the rules around electronic evidence of sales (EET). The obligation to keep electronic evidence of sales applies to businesses in statutorily defined business areas, who accept payment for provided services (in whole or in part) by credit card or in cash. These rules are rather new so if you have questions about your legal situation, check with the City of Prague, Financial authority or your legal or tax advisor.
*Airbnb is not responsible for the reliability or correctness of the information contained in any links to third party sites (including any links to legislation and regulations).